Average Retirement Age in America: Why So Many People Retire Later Than They Planned
Confluent Asset Management
Retirement Planning Team
What Is the Average Retirement Age? (And How to Change Your Outlook)
If you ask most Americans when they want to retire, the answer is often somewhere around age 65. But reality tells a different story.
According to the latest Employee Benefit Research Institute (EBRI) Retirement Confidence Survey, the median expected retirement age is 65, while the median actual retirement age is 62. However, many workers now expect to work even longer than previous generations, with more than one in five workers saying they may never retire.
The average retirement age has shifted over the years due to several major factors:
- Increased life expectancy
- Rising healthcare costs
- Inflation
- Declining pension availability
- Greater reliance on personal retirement savings
- Economic uncertainty
While retirement ages vary based on occupation, health, and financial readiness, one thing remains consistent:
Many Americans are not retiring because they reached their goal—they’re retiring because circumstances forced the decision.
The Retirement Age Americans Want vs. Reality
One of the most surprising findings from the EBRI Retirement Confidence Survey is the disconnect between expectations and reality
|
Retirement Statistic
|
Current Data
|
|---|---|
|
Expected retirement age
|
65
|
|
Median actual retirement age
|
62
|
|
Workers expecting to retire at 70+ or never
|
22%
|
|
Retirees who actually worked until 70+
|
Much lower
|
Why the gap?
Many people imagine working longer to build additional savings.
But life often has different plans.
Unexpected health issues, layoffs, caring for aging parents, or company downsizing can end careers years earlier than expected. Nearly 4 in 10 retirees say they retired earlier than planned, and most cite reasons outside of their control.
Why Are More People Working Later?
Retirement has become increasingly expensive.
Some of the biggest reasons Americans delay retirement include:
1. Longer Life Expectancy
Retiring at age 65 may mean funding 25–30 years without employment income.
That requires significantly more savings than previous generations needed.
2. Rising Healthcare Costs
Healthcare remains one of the largest retirement expenses.
Even with Medicare beginning at age 65, retirees still face premiums, deductibles, prescriptions, dental care, vision expenses, and potential long-term care costs.
3. Inflation
Inflation quietly erodes purchasing power.
A retirement income that feels comfortable today may buy substantially less twenty years from now.
This is why investment growth, not simply saving cash—is critical for long-term retirement success.
4. Fewer Traditional Pensions
Previous generations often relied on employer pensions.
Today, most workers are responsible for funding retirement through:
- 401(k)s
- IRAs
- Brokerage accounts
- Personal investments
That shifts both the responsibility and the investment risk onto individuals.
5. Retirement Savings Gaps
Perhaps the biggest reason people work longer than expected is simple:
They haven’t saved enough.
Many households discover late in their careers that there’s a significant difference between:
- The retirement income they want
- The retirement income their current portfolio can realistically provide
This difference is commonly known as a retirement gap.
What Is a Retirement Gap?
Your retirement gap is the difference between:
- What you’ll likely need to maintain your desired lifestyle
- What your investments are currently projected to generate
For some households, that gap may be small.
For others, it can represent hundreds of thousands of dollars—or several additional years of working.
The encouraging news?
Unlike market performance, your retirement gap is something you can actively influence.
How Close Are You to Retirement?
Many people don’t realize they have a retirement gap until they’re only a few years away from retiring.
Our free Retirement Gap Calculator helps you estimate:
- How much retirement income you may need
- Whether you’re currently on track
- How large your retirement gap could be
- What adjustments may improve your outlook
👉 Use Confluent’s Retirement Gap Calculator today and gain a clearer picture of your retirement future.
How Closing Your Retirement Gap Can Improve Your Retirement Outlook
The good news is that retirement planning isn’t just about saving more money.
It’s about making smarter financial decisions.
Small improvements made consistently over time can have a meaningful impact.
Examples include:
Increasing Annual Savings
Even increasing retirement contributions by 2–3% each year can significantly increase long-term portfolio values because of compound growth.
Improving Investment Allocation
Many investors unknowingly take either too much, or too little risk.
A diversified portfolio aligned with your retirement timeline can help improve long-term outcomes while managing volatility.
Reducing Taxes
Tax-efficient withdrawal strategies and Roth conversion opportunities may allow retirees to keep more of what they’ve saved.
Creating an Income Strategy
Retirement isn’t just about accumulating wealth.
It’s about creating reliable income that lasts throughout retirement.
A well-designed withdrawal strategy can reduce the risk of running out of money later in life.
Don't Let Social Security Become Your Entire Retirement Plan
Social Security remains an important part of retirement income.
However, it was never intended to replace a full paycheck.
Many retirees depend heavily on Social Security, making personal savings and investment planning increasingly important for maintaining their desired lifestyle.
Why Professional Retirement Planning Matters
Online calculators can provide a helpful starting point.
But they cannot account for:
- Taxes
- Investment risk
- Sequence-of-returns risk
- Healthcare expenses
- Estate planning
- Required Minimum Distributions (RMDs)
- Social Security timing
- Income distribution strategies
These decisions can significantly impact how long your money lasts.
Working with a fiduciary financial advisor helps ensure your retirement plan reflects your unique goals, not generic assumptions.
Want to Retire With More Confidence?
Whether you’re hoping to retire at 55, 62, 65, or later, having a personalized retirement strategy can make a meaningful difference.
At Confluent Asset Management, we help individuals and families:
- Identify retirement income gaps
- Build customized investment portfolios
- Reduce unnecessary taxes
- Create sustainable retirement income strategies
- Develop long-term financial confidence
Schedule a complimentary retirement consultation with a Confluent advisor and discover what steps could help improve your retirement outlook.
Frequently Asked Questions
What is the average retirement age in the United States?
Current survey data shows the median expected retirement age is 65, while the median actual retirement age is 62, although many workers now expect to work until age 70 or beyond.
Why do people retire later than planned?
Common reasons include insufficient retirement savings, inflation, healthcare costs, longer life expectancy, market downturns, and the disappearance of traditional pension plans.
What is a retirement gap?
A retirement gap is the difference between the retirement income you’ll likely need and the income your current savings are projected to generate.
Can I close my retirement gap?
Yes. Increasing savings, improving investment efficiency, reducing taxes, delaying retirement when appropriate, and developing a personalized financial plan can all help reduce or eliminate a retirement gap.
Final Thoughts
The average retirement age is only one piece of the retirement planning puzzle.
The more important question isn’t when most people retire.
It’s whether you’ll be financially prepared to retire when you want to.
Understanding your retirement gap today gives you the opportunity to make informed decisions while there’s still time to improve your financial future.
The sooner you know where you stand, the more options you’ll have to build the retirement you’ve worked hard to achieve.
Sources
- Employee Benefit Research Institute – Retirement Confidence Survey: https://www.ebri.org/retirement/retirement-confidence-survey/2025-survey-results
- Social Security Administration – Full Retirement Age: https://www.ssa.gov/faqs/en/questions/KA-01885.html
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